Trippe Manufacturing Company v. Spencer Gifts, Inc.
Decision Date | 15 October 1959 |
Docket Number | No. 12603.,12603. |
Citation | 270 F.2d 821 |
Parties | TRIPPE MANUFACTURING COMPANY, Plaintiff-Appellee, v. SPENCER GIFTS, INC., Defendant-Appellant. |
Court | U.S. Court of Appeals — Seventh Circuit |
Edward A. Haight and William J. Marshall, Jr., Chicago, Ill., for appellant.
Stanley R. Weinberger, Leonard Schanfield and William P. Rosenthal, Chicago, Ill., for appellee.
Before DUFFY, PARKINSON and KNOCH, Circuit Judges.
This suit charges unfair competition. Plaintiff, an Illinois corporation, is engaged in the manufacture of electric lighting devices and lighting equipment. Its principal place of business is Chicago, Illinois. Defendant, a New Jersey corporation, is engaged in the mail order business. Its sole place of business is at Atlantic City, New Jersey. It is not licensed to do business in Illinois.
The complaint alleges that in August, 1957, plaintiff commenced the manufacture of a small rotating light which it advertised under a common law trademark, "Welcome Light." The suggested retail price was $29.88. It was further alleged that in May, 1958, defendant obtained from plaintiff, advertising material pertaining to plaintiff's rotating light. Plaintiff claims it sent a light, a picture and other advertising materials to defendant, all of which were returned with the statement that defendant could not use same. Plaintiff claims, however, that the 1958 Christmas catalog did advertise for sale a light, the picture of which appeared in the catalog, which was, in fact, a picture of plaintiff's product. This light was listed in the catalog at $19.98. Plaintiff claims that the defendant, in fact, sells a light manufactured by one of plaintiff's competitors.
Since defendant could not be served in the Northern District of Illinois, plaintiff obtained an order for summons to issue under Rule 4(d) (7), F.R.Civ.P. 28 U.S.C.A. The summons was forwarded to Atlantic City and service was there made on the president of defendant. Thereafter, defendant filed a motion to quash service of process, and to dismiss the action for lack of jurisdiction. The District Court denied defendant's motion, but concluded the order involved a controlling question of law as to which there was substantial ground for difference of opinion, and that an immediate appeal from the order could materially advance the ultimate determination of the litigation. We granted defendant's petition for leave to appeal from the interlocutory order. 28 U.S.C.A. § 1292.
Plaintiff argues that defendant submitted itself to the jurisdiction of Illinois courts because defendant's activities in mailing catalogs into Illinois came within the provisions of § 17 of the Illinois Civil Practice Act. (Ill.Stat.1957, Ch. 110, § 17). The pertinent part of that section provides:
Subsection (d) pertains to any party contracting to insure any person, property or risk within Illinois.
The first question for us to consider is whether defendant, by sending catalogs into Illinois through the mail, was engaged in the transaction of any business within the State of Illinois.
Plaintiff cites McGee v. International Life Insurance Company, 1957, 355 U.S. 220, 78 S.Ct. 199, 2 L.Ed.2d 223. However, we think the more recent case of Hanson v. Denckla, 1958, 357 U.S. 235, 252-253, 78 S.Ct. 1228, 2 L.Ed.2d 1283, demonstrates the McGee case has been limited by the Court to the insurance field. Under the McCarran Act, 15 U.S. C.A. §§ 1011-1015, the Federal Government recognizes the wide powers of a state over insurance business activities within its borders.
The Illinois statute hereinbefore quoted, as well as similar non-resident jurisdictional statutes in other states, have, since the time of Pennoyer v. Neff, 1877, 95 U.S. 714, 24 L.Ed. 565, widened considerably the bases for service on non-resident defendants in in personam suits. However, there still remain important limitations on a state's power to extend jurisdiction beyond its territorial limits. Hanson v. Denckla, 357 U.S. 235, 78 S. Ct. 1228, 2 L.Ed.2d 1283; Orton v. Woods Oil & Gas Co., 7 Cir., 249 F.2d 198; Grobark v. Addo Machine Co., Inc., 16 Ill.2d 426, 158 N.E.2d 73. We think the Grobark case is controlling on the point we are now considering. It is the last word we have from the Illinois Supreme Court. In that case, which was one for breach of an exclusive...
To continue reading
Request your trial-
Chovan v. EI Du Pont De Nemours & Company
...25 A.L.R.2d 1193 (1951). Contra: Erlanger Mills, Inc. v. Cohoes Fibre Mills, 239 F.2d 502 (4th Cir., 1956); Trippe Manufacturing Co. v. Spencer Gifts, 270 F.2d 821 (7th Cir.1959); Mann v. Equitable Gas Co., 209 F.Supp. 571 (N.D.W.Va.1962); Pendzimas v. Eastern Metal Products Corp., D.C.Minn......
-
Taylor v. Portland Paramount Corporation, 21334.
...1966, 150 S.E.2d 793. But see Velandra v. Regie Nationale des Usines Renault, 6 Cir., 1964, 336 F.2d 292; Trippe Mfg. Co. v. Spencer Gifts, Inc., 7 Cir., 1959, 270 F.2d 821; Hardy v. Bankers Life & Cas. Co., 1958, 19 Ill.App.2d 75, 153 N.E.2d 269; Feathers v. McLucas, 1965, 15 N.Y.2d 443, 2......
-
Green v. Robertshaw-Fulton Controls Company
...York, World-Telegram Corp., 273 F.2d 166 (7th Cir. 1959); 362 U.S. 942, 80 S.Ct. 807, 4 L.Ed.2d 770 (1960); Trippe Mfg. Co. v. Spencer Gifts, Inc., 270 F. 2d 821 (7th Cir. 1959); National Gas Appliance Corp. v. AB Electrolux, 270 F.2d 472, 473 (7th Cir. 1959); Kaye-Martin v. Brooks, 267 F.2......
-
Alchemie Intern., Inc. v. Metal World, Inc.
...assertion of jurisdiction"; court found "no doubt that Hanson reduces the potential sweep of McGee"); Trippe Mfg. Co. v. Spencer Gifts, Inc., 270 F.2d 821, 822 (7th Cir. 1959) ("We think Hanson demonstrates the McGee case has been limited by the Court to the insurance field"); Carrington & ......